DEFENSE LOGISTICS AGENCY

 HEADQUARTERS

 8725 JOHN J. KINGMAN ROAD

 FORT BELVOIR, VIRGINIA 22060-6221

August 02, 2017

MEMORANDUM FOR SUPPLY PROCESS REVIEW COMMITTEE (PRC) AND JOINT 

PHYSICAL INVENTORY WORKING GROUP (JPIWG) MEMBERS

SUBJECT: Approved Defense Logistics Management Standards (DLMS) Change (ADC) 1242,

Administrative Update to MILSTRAP Appendix 3.4, Inventory Adjustment –

Increase or Decrease Format Use for DIC D8/D9, and Code Appendices 2.15 and 

2.16 (Supply/MILSTRAP)

We are forwarding the attached approved administrative change to DLM 4000.25-2, 

Military Standard Transaction Reporting and Accountability Procedures (MILSTRAP) for 

implementation effective immediately. 

Addressees may direct questions to Mr. Rafael Gonzalez, e-mail: 

Rafael.Gonzalez@dla.mil. Others may direct questions to their Service or Agency designated 

Supply PRC and Joint Physical Inventory Coordinating Group representative available at

http://www.dla.mil/HQ/InformationOperations/DLMS/committees/. 

 

 

HEIDI M. DAVEREDE

Program Manager

Enterprise Business Standards Office

Attachment

As stated 

cc: 

ODASD (SCI)
Attachment, ADC 1242

Page 1

ATTACHMENT TO ADC 1242

Administrative Update to MILSTRAP Appendix 3.4, Inventory 

Adjustment – Increase or Decrease Format Use for DIC D8/D9

Inventory Adjustment, and Code Appendices 2.15 and 2.16

(Supply/MILSTRAP)

1. ORIGINATING SERVICE/AGENCY AND POC INFORMATION:

a. Office: Defense Logistics Management Standards (DLMS) Program Office 

b. Functional POC: Mr. Rafael Gonzalez, DLMS, email: Rafael.Gonzalez@dla.mil, (717) 

770-6817; DSN 771-6817

2. FUNCTIONAL AREA: Supply, MILSTRAP

3. REFERENCES:

a. Defense Logistics Manual (DLM) 4000.25-2, Military Standard Transaction Reporting and 

Accountability Procedures (MILSTRAP)

b. Approved Defense Logistics Management System (DLMS) Change (ADC) 414, Revisions 

to DLMS and MILSTRAP Procedures to Address Owner/Manager Research of Inventory Adjustments 

(Accounting Error) (MILSTRAP D8B/D9B, DLMS 947I), March 28, 2011

4. REQUESTED CHANGE(S):

a. Brief Overview of Change: Administrative update to revise MILSTRAP (Reference 3.a.) 

D8_, D9_ Inventory Adjustment - Increase or Decrease Appendix 3.4 and add instructions to the 

appropriate Inventory Adjustment Error Classification Code Appendix for Increase or Decrease 

Legacy format Document Identifier Code (DIC) D8B/D9B. Additionally, provides administrative 

updates to MILSTRAP Appendices 2.15 Inventory Adjustment - Physical Inventory Error 

Classification Codes and 2.16 Inventory Adjustment - Accounting Error Classification Codes.

b. Background:

(1) ADC 414 (Reference 3.b.) published MILSTRAP Appendix 2.16, Inventory 

Adjustment – Accounting Error Classification Codes, for use with Inventory Adjustment (Accounting 

Error) transactions, legacy DIC D8B and D9B, in record positions (rp) 63-65. However, the ADC did 

not make the corresponding update to Appendix 3.4, Inventory Adjustment – Increase or Decrease 

(D8_/D9_). rp 63-65 to address the new appendix 2.16 for use with D8B/D9B. 

(2) The corresponding DLMS 947I Inventory Adjustment Accounting Error, 947I with 

2/W1901/0200 Quantity or Status Adjustment Reason Code AB, does reflect the use of Inventory 

Adjustment - Accounting Error Classification Codes at 2/LQ01/1000 code ACC. Accordingly, the 

DLMS 947I requires no update. 

(3) ADC 414 also neglected to update Appendix 2.15, Inventory Adjustment – Physical 

Inventory Error Classification Codes, to remove reference to DIC D8B/D9B, which is now addressed 

by Appendix 2.16.
Attachment, ADC 1242

Page 2

(4) This change also makes administrative updates to Appendix 2.16, Inventory 

Adjustment – Accounting Error Classification Codes.

c. Requested Change in Detail:

(1) Revise MILSTRAP Appendix 3.4 Inventory Adjustment Increase or Decrease, rp.

63-65, to cite the use of Appendix 2.16 accounting error classification codes with DIC D8B/D9B.

(2) Revise MILSTRAP Appendix 2.15 Inventory Adjustment - Physical Inventory 

Error Classification Codes to delete erroneous mention of DIC D8B/D9B.

(3) Revise MILSTRAP Appendix 2.16 Inventory Adjustment - Accounting Error 

Classification Codes to align with the corresponding DLMS transactions.

d. Revisions to DLM 4000.25 Manuals:

(1) Revise MILSTRAP Appendix 3.4, Inventory Adjustment – Increase or Decrease, as 

shown.

FIELD LEGEND

RECORD

POSITION(S) ENTRY AND INSTRUCTIONS

Dual Use 63-65

Error 

Classification

(63-64) For DIC D8A and D9A, enter appropriate 

DoD assigned physical inventory error 

classification code from Appendix AP2.15, 

otherwise, leave blank.

For DIC D8B and D9B enter appropriate 

DoD assigned accounting error 

classification code from Appendix 2.16, 

otherwise, leave blank.

(65) For DIC D8A/andD9A and D8B/D9B, in 

accordance with Appendices 2.15 and 2.16, 

Components use to enter their Component 

assigned code amplifying the DoD error 

classification code, for their internal use; 

otherwise, leave blank. 

Or

Multiuse (63-65) For intra-Component use with DIC other 

than D8A/D9A or D8B/D9B, enter data 

prescribed by Component. For interComponent use except for DIC D8A/D9A or

D8B/D9B, leave blank.

(2) Revise MILSTRAP Appendices 2.15 and 2.16 as shown in the enclosure. 
Attachment, ADC 1242

Page 3

e. Alternatives: None.

5. REASON FOR CHANGE: This administrative change corrects Appendix 3.4, Inventory 

Adjustment, due to an oversight in ADC 414 which neglected to update Appendix 3.4 as part of the 

changes to DLM 4000.25-2. This change also provides administrative updates to Appendices 2.15 and 

2.16.

6. ADVANTAGES AND DISADVANTAGES:

a. Advantages: Aligns appendixes with appropriate language based on ADC 414.

b. Disadvantages: None.

7. ESTIMATED TIME LINE/IMPLEMENTATION TARGET: Effective immediately upon 

release of ADC. 

8. IMPACT:

a. New/Change DLMS Data Elements: No DLMS data elements changes.

b. Automated Information Systems (AIS): None.

c. Transaction Services: There are no changes to current transaction flows and mappings 

through DAAS.

d. Non-DLM 4000.25 Series Publications: None identified. Components must review their 

publication(s) and ensure they reflect the correct information.
Enclosure, ADC 1242

Page 1

Enclosure, 

a. Revise MILSTRAP Appendices 2.15 Inventory Adjustment - Physical Inventory Error 

Classification Codes as shown. 

AP2.15, APPENDIX 2.15

INVENTORY ADJUSTMENT - PHYSICAL INVENTORY 

ERROR CLASSIFICATION CODES

AP2.15.1. PURPOSE

AP2.15.1.1. The physical inventory program error classification codes provide a 

standard means for Components to classify the causes of actual/potential inventory 

adjustments (physical inventory) for subsequent analysis, evaluation, and corrective action.

AP2.15.1.2. The error classification code is a required entry on MILSTRAP/DLMS

documentation for use in preparing reports and for providing evaluation data to higher 

authority in standard error classification categories.

NUMBER OF CHARACTERS: Three

TYPE OF CODE: Alpha/Numeric

EXPLANATION: Provides processing activities a means of 

mechanically identifying the causes for errors 

which resulted in potential/actual inventory 

adjustments (physical inventory)

transactions and the processing operations 

in which they occurred

DLSSLEGACY RECORD POSITION (rp.): 63-65 

LEGACY MILSTRAP DOCUMENT 

IDENTIFIER CODE (DIC):

D8A, D9A

DLMS IMPLEMENTATION CONVENTION 

(IC):

947I with 2/W1901/0200 Quantity or Status 

Adjustment Reason Code ‘AA-Physical 

Count’

DLMS SEGMENT/QUALIFIER: LQ segment, LQ01 qualifier ‘EL – Error 

Classification Code’ 
Enclosure, ADC 1242

Page 2

b. Revise 2.16 Inventory Adjustment - Accounting Error Classification Codes to align with the 

corresponding DLMS transactions as shown.

APPENDIX 2.16

INVENTORY ADJUSTMENT - ACCOUNTING ERROR 

CLASSIFICATION CODES

AP2.16.1 PURPOSE

AP2.16.1.1 The physical inventory program error classification codes for accounting 

error inventory adjustments (Document Identifier Code (DIC) D8B/B9B) provide a standard 

means for DoD Components to classify the causes of actual/potential accounting error 

inventory adjustments for subsequent analysis, evaluation, and corrective action.

AP2.16.1.2 The error classification code is a required entry on MILSTRAP/DLMS

documentation for use in preparing reports and for providing evaluation data to higher 

authority in standard error classification categories.

 1 The owner/manager may use the Inventory Adjustment –Accounting Error Classification Codes in rp 63-65 in DIC 

D8B/D9B Inventory Adjustment Transactions (Accounting Errors) pending the establishment of single shared asset 

balances (see chapter 7).

NUMBER OF CHARACTERS: Three

TYPE OF CODE: Alpha/Numeric

EXPLANATION: Provides processing activities a means of 

mechanically identifying the causes for errors 

which resulted in potential/actual inventory 

adjustment (accounting error) transactions,1

and the processing operations in which they 

occurred

DLSSLEGACY RECORD POSITION (rp.): 63-65 

LEGACY MILSTRAP DOCUMENT 

IDENTIFIER CODE (DIC):

D8B/D9B

DLMS IMPLEMENTATION CONVENTION 

(IC):

947I with W19 segment, W1901 Quantity 

or Status Adjustment Reason Code ‘ABAccounting Error’

DLMS SEGMENT/QUALIFIER: LQ segment, LQ01 qualifier ‘ACC –

Accounting Error Classification Code’ 

used with W19 segment, W1901 Quantity or 

Status Adjustment Reason Code ‘ABAccounting Error’
Enclosure, ADC 1242

Page 3

AP2.16.2 CODE STRUCTURE

AP2.16.2.1 First Position. The first character shall be numeric or alphabetic and shall 

identify the type of transaction during which the error occurred. Code assignment for the first 

character is controlled by DoD and may not be assigned by the DoD Components. The 

following operation codes are assigned as the first character in the error classification code:

CODE OPERATION CODE OPERATION

0 Not assigned; reserved for future 

assignment by DoD

6 Condition Code Transfer 

(947I/DIC DAC)

1 Receipt (527R Transaction 

Type Code D4/DIC D4_/D6_)

7 Not Assigned

2 Issue (867I/DIC D7_)/, Materiel 

Release (940R/DIC A5_) 

8 Other

3 Physical Inventory (947I/DIC

D8A/D9A)

9 Not assigned; reserved for 

future assignment by DoD

4 Cataloging Changes A-Z Not assigned; reserved for 

future assignment by DoD

5 Logistics Reassignments